Last edited 23 Feb 2021

Section 63 assessment

It has become mandatory for commercial landowners in Scotland to undertake a Section 63 assessment to comply with energy efficiency requirements for domestic buildings of more than 1000m² with eligibility for an EPC (Energy Performance Certificate) for rent or sale.

Buildings that meet energy standards equivalent to those introduced by the 2002 building regulations or are already improved via a Green Deal are exempted from the regulations.

The assessment results in the production of an action plan setting targets for enhancing the carbon and energy performance of the building and how these targets could be met through physical improvements to the property.

An action plan may contains measures such as lighting controls upgrade, low energy lighting improvements, boiler replacement, heating controls enhancement, installation of draught stripping to windows and doors, insulation installation and so on.

Action plans are submitted in the EPC register and the owners have to make these details available to prospective tenants or buyers.

Once the targets and measures are finalised, they should be implemented or carried out within 42 months of the action plan. If the building owner does not complete the improvement measures within this time, a DEC certificate must be produced on a yearly basis until all the improvements are implemented. If the building owner completes the improvements within 42 months, a fresh action plan and EPC are created and submitted. This step proves that the property owner has done everything to meet the regulation requirements.

If a property owner fails to produce an action plan while selling or renting the property or does not perform or complete the enhancement works within the stipulated time frame; they may be liable to pay a fine for each failure.

Action plans are produced by persons registered as section 63 advisors, who have demonstrated competence in the assessment procedure and the provision of improvement advice to building owners.

Local authorities and the Scottish government monitor the energy improvement data collection and if they identify that the energy improvement measures do not meet the expected standards, property owners will be asked to perform retrofit works prescribed in the regulations.

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